Have you ever wondered about the value of working salaries in Panama? If you want to work in Panama, get to know with us the factors on the basis of which the value of the salary and the average annual increase change, in addition to the salaries of some professions in it.
As a foreign resident looking to work in Panama, your options for local employment are limited. Foreign residents are prohibited from participating in certain industries.
You cannot become a licensed real estate agent, until you have been a legal resident for five years and have passed the Spanish Real Estate Broker Exam. As an expat, you also cannot practice medicine or law. Retail is another sector in which foreigners are not allowed to work in Panama.
You will not be able to work as an official translator, but some expats have found side jobs doing translation for offices and receiving cash payments.
To start working in Panama, you will need to find an employer willing to sponsor you and arrange for your work visa. Due to the high competition for many jobs, there are restrictions on the percentage of foreigners a Panamanian company may employ (generally 10%). There are exceptions for technical positions and temporary positions.
According to Panamanian law, only 10% of employees in a company can be foreigners. However, there are exceptions.
If the company needs specialized personnel that are not readily available in the workforce in Panama, for example, it is allowed to hire technical or specialist personnel. (In this case, foreign employees cannot exceed 15% of all company employees.
Work Salary in Panama
The average salary in Panama is 25,400 Panamanian pesos annually or 2120 Panamanian pesos per month.
Noting that ((the Panamanian Balbo is equal to the US dollar in value)) at the present time
A Panamanian employee receives a minimum wage of 12 Panamanian balbo per hour. Hourly employees are usually entitled to overtime, while salaried employees usually receive a fixed salary.
However, average salaries alone will not give you an accurate picture of salary rates in Panama. You will also have to consider:
- education level.
- years of experience.
Moreover, average salaries may vary in different locations as well.
For example, the salary of a social worker in Panama City may differ from what it is in Santiago.
So studying the national average salary in Panama from different perspectives will give you a better idea of what you pay your Panamanian employees.
Average salary in Panama by experience
In Panama, an employee’s level of experience is the most important factor in determining their salary. People with more years of experience get a higher salary.
Employees with two to five years of experience earn 32% more than entry-level or inexperienced employees.
Professionals with more than five to 10 years of experience earn a salary 36% higher than those with less than five years.
Employees with 10 to 15 years of experience earn 21% more than those with only two to five years of experience.
Employees with 15-20 years of experience earn 14% more salaries than those with less than 15 years of experience.
Overall, professionals with 20 or more years of experience earn 9% more.
In Panama, an employee’s salary usually doubles every 10 years.
Average Salary in Panama by Education
Education levels play an important role in salaries in Panama.
According to Panama’s compensation data for 2022:
Employees with a certificate or diploma earn an average salary that is 17% more than those with a high school diploma.
Professionals with a bachelor’s degree earn 24% more than those with a degree or diploma.
Professionals with a master’s degree earn 29% higher salaries than those with only a bachelor’s degree.
Ph.D. Holders earn 23% more than professionals with a master’s degree despite doing the same job.
Average annual salary increases in Panama
Salary increases in Panama vary depending on several factors.
Although average annual salary increases typically refer to a 12-month period, most employees’ salaries are not reviewed exactly every 12 months. But overall, the average annual increase in income in Panama is 4%.
Average annual increases by industry
Here are the industry’s average annual increases for 2021:
- Banking 5%
- energy 1%
- Information Technology6%
- travel 7%
- building 3%
- Education 8%
Companies in the most successful industries tend to offer higher and more frequent salary increases to their employees in Panama. The economic situation of the country also plays an important role in this.
Average annual increases in Panama by experience
Below are the average annual increases depending on the employee’s years of experience:
- Beginner level 3% – 5%
- Middle career 6%-9%
- Senior level 10%-15%
- Senior management 15%-20%
Salaries for occupations in Panama
Doctor salary in Panama
The average salary of a doctor in Panama is around $250,000 annually. The most common earning is $300,000. Salaries differ between men and women, for example a woman earns $250,000.
Depending on education, people with a PhD receive the highest salaries with a salary of $250,000.
Different experiences affect earnings as well, for example people with 1-2 years experience get a salary of $250,000.
Lawyer salary in Panama
The average salary for a lawyer in Panama is about US$21,666 per year. The most common earning is $17,000. Salaries differ between men and women. Men earn an average salary of $18,000. While women receive a salary of 29,000 US dollars.
Depending on education, people with a master’s degree receive the highest salaries with a salary of $22,500. The second highest paid education level is a Ph.D. with a salary of $20,000.
Different experiences affect earnings as well. Those with 12-16 years of experience earn a salary of $29,000. Employees with more than 20 years of experience get $20,000 USD.
Teacher salary in Panama
The gross salary of a school teacher in Panama is approximately $21,114 or the equivalent of $10 per hour. Additionally, they earn an average bonus of $412.
And based on years of experience, a junior school teacher earns an average salary of $15,740. On the other hand, a high-ranking teacher earns an average salary of $25,745.
The strong ICT infrastructure, excellent language skills, and affordability of the Panamanian workforce make this country an attractive destination for outsourcing.
However, your outsourcing needs will vary depending on the nature and needs of your business.
You can use the information in this article to learn more about Panama and its average salary to make an informed decision about whether it is a good fit for your job.